Medifast, Inc. (NYSE: MED) rose Friday following upbeat Q2 results.
Revenue was $117.3 million, an increase of 54.9% year-over-year. Net income was $14.1 million, an increase of 86.4% year-over-year.
Earnings per diluted share ("EPS") were $1.16, an increase of 84.1% year-over-year
Gross profit for the second quarter of 2018 increased to $88.8 million from $57.6 million for the second quarter of 2017. The Company's gross profit as a percentage of revenue decreased 40 basis points to 75.7% from 76.1% for the second quarter last year.
The decrease in gross margin percentage was a result of an acceleration in the number of new clients which increased the proportion of clients receiving a first-order discount.
According to CEO Dan Chard, "We are pleased to report a further acceleration in the business momentum we reported in the first quarter of the year, resulting in record revenues and profitability that exceeded our expectations.
"The accelerating growth rate is an indication of the energy behind our integrated coach model tied to our powerful mission and a repeatable business rhythm capable of delivering long-term sustainable growth.
"We are confident that we are well positioned for future growth and, based on these strong operational and financial results as well as our positive outlook for the remainder of the year, we are pleased to be able to raise our annual guidance once again this year."
Shares galloped $45.85, or 26.2%, Friday morning to $221.19
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